I need interpreting the above word problems you see above because I need to create adjusting journal entries for the above word problems. This way, I can calculate the dollar amount and enter in the dollar amounts, which will appear on the Adjusted Trial Balance.

For-notes-to-the-financial statements-and-Management Analysis-Memo, consider the following: 1 1 Peyton-Approved-uses-the-following accounting-practices: 1 1 + Inventory:-Periodic-LIFO-for-both-baking-and-merchandise .+ Equipment: Straight-line-method-used-for-equipment 1 Business-Financing-Information: Use-this-information-to-calculate-interest rates-and-insurance-information, and-to- assess-their-impact-on-the-company's-financial-obligations: 1 + 6%-interest-note-payable-was-made-on-Jan-31, 2017, and-is-due-Feb-1, 2019. + 5-year-loan-was-made-on-June-1, 2016. Terms are:7.5%-annual-rate, interest-only-until-due-date. + Insurance:-Annual-policy.covers-12 months, purchased-in-February, covering-March-2017-to-February 2018 No- monthly adjustments have been made. PEYTON APPROVED PRO FORMA INFORMATION The company is planning to open another location in 2018. Prepare pro forma financials for 2018 for the new location using the following information: 1. Cost of leasing commercial space: $1,500 per month. 2. Cost of new equipment: $15,000, purchased with a long-term note. Use straight line depreciation assuming a seven-year life, no residual value. Use full year's depreciation for the first year. Equipment purchase was financed with a long-term note. 3. Cost of hiring and training new employees: three at $25,000 each for the first year. 4. Except as noted below in 1, 2, 3, and 5, assets, current liabilities, sales, costs, and expenses are expected to be 80% of the existing store (from preliminary statements) except no stock. Retained earnings = net income 5. Cash: $7,000. Accounts receivable amount to 4.0 turns (accounts receivable turnover will be 4.0); inventory amount to show 3.0 turns (inventory turnover will be 3.0). No stock will be issued. Retained earnings are to equal net income. Additional financing of $5,000 will be long-term. Add remaining amount needed to balance into accounts payable. 1 2 PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 3 4 5 6 ref Unadjusted trial balance Dr Cr 67,520.04 68,51991 Adjusting entries Dr Cr 1,000.00 ref 7 8 9 700.00 3.175.00 10 15,506.70 1,238.07 11 200.00 12 200.00 13 Cash Accounts Receivable Other Receivable - Insurance Baking Supplies Merchandise Inventory Consignment Irwentory Prepaid Rent Prepaid Insurance Misc. Suppies Baking Equipment Accumulated Depreciation Customer Deposit Accounts Payable Wages Payable Interest Payable Notes Payable 14 Adjusted trial balance Dr Cr 68,520.04 68,519.91 700.00 18,681.70 1,038.07 200.00 2,114.55 2,114.55 170.49 12,000.00 406.44 1,000.00 23,437.11 3.383.28 211.46 5,000.00 2,114.55 2,114.55 170.49 14,000.00 15 16 2,000.00 17 1,606.44 1.200.00 18 1,000.00 3,175.00 19 20 20,26211 3,383 28 211.46 5,000.00 21 22 23 20,000.00 50,144.84 20,000.00 50,144.84 24 25 105,000.00 26 327 322.55 1.205.64 327 322.55 1,205.64 27 28 29 30 31 32 Common Stock Beginning Retained eamings Dividends 105,000.00 Bakery Sales Merchandise Sales Cost of Goods Sold - Baked 105,83429 Cost of Goods Sold - Merchandise 859.77 Rent Expense 24,549.19 Wages Expense 10,670.72 Misc. Supplies Expense 3.000.46 Business License Expense 2,045.77 Misc. Expense 1,363.84 Depreciation Expense 677.86 Insurance Expense 1,091.08 Advertising Expense 1,549.74 Interest Expense 818.31 Telephone Expense 490.98 Gain Loss on disposal of equipment 429,136.32 33 34 105,834.29 859.77 24,549.19 10,670.72 3,000.46 2,045.77 1,363.84 677.86 1,091.08 1,549.74 818 31 490.98 100.00 432 111.32 35 36 37 38 39 40 100.00 6,375.00 429,136.32 6,375.00 432,11132 For-notes-to-the-financial statements-and-Management Analysis-Memo, consider the following: 1 1 Peyton-Approved-uses-the-following accounting-practices: 1 1 + Inventory:-Periodic-LIFO-for-both-baking-and-merchandise .+ Equipment: Straight-line-method-used-for-equipment 1 Business-Financing-Information: Use-this-information-to-calculate-interest rates-and-insurance-information, and-to- assess-their-impact-on-the-company's-financial-obligations: 1 + 6%-interest-note-payable-was-made-on-Jan-31, 2017, and-is-due-Feb-1, 2019. + 5-year-loan-was-made-on-June-1, 2016. Terms are:7.5%-annual-rate, interest-only-until-due-date. + Insurance:-Annual-policy.covers-12 months, purchased-in-February, covering-March-2017-to-February 2018 No- monthly adjustments have been made. PEYTON APPROVED PRO FORMA INFORMATION The company is planning to open another location in 2018. Prepare pro forma financials for 2018 for the new location using the following information: 1. Cost of leasing commercial space: $1,500 per month. 2. Cost of new equipment: $15,000, purchased with a long-term note. Use straight line depreciation assuming a seven-year life, no residual value. Use full year's depreciation for the first year. Equipment purchase was financed with a long-term note. 3. Cost of hiring and training new employees: three at $25,000 each for the first year. 4. Except as noted below in 1, 2, 3, and 5, assets, current liabilities, sales, costs, and expenses are expected to be 80% of the existing store (from preliminary statements) except no stock. Retained earnings = net income 5. Cash: $7,000. Accounts receivable amount to 4.0 turns (accounts receivable turnover will be 4.0); inventory amount to show 3.0 turns (inventory turnover will be 3.0). No stock will be issued. Retained earnings are to equal net income. Additional financing of $5,000 will be long-term. Add remaining amount needed to balance into accounts payable. 1 2 PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 3 4 5 6 ref Unadjusted trial balance Dr Cr 67,520.04 68,51991 Adjusting entries Dr Cr 1,000.00 ref 7 8 9 700.00 3.175.00 10 15,506.70 1,238.07 11 200.00 12 200.00 13 Cash Accounts Receivable Other Receivable - Insurance Baking Supplies Merchandise Inventory Consignment Irwentory Prepaid Rent Prepaid Insurance Misc. Suppies Baking Equipment Accumulated Depreciation Customer Deposit Accounts Payable Wages Payable Interest Payable Notes Payable 14 Adjusted trial balance Dr Cr 68,520.04 68,519.91 700.00 18,681.70 1,038.07 200.00 2,114.55 2,114.55 170.49 12,000.00 406.44 1,000.00 23,437.11 3.383.28 211.46 5,000.00 2,114.55 2,114.55 170.49 14,000.00 15 16 2,000.00 17 1,606.44 1.200.00 18 1,000.00 3,175.00 19 20 20,26211 3,383 28 211.46 5,000.00 21 22 23 20,000.00 50,144.84 20,000.00 50,144.84 24 25 105,000.00 26 327 322.55 1.205.64 327 322.55 1,205.64 27 28 29 30 31 32 Common Stock Beginning Retained eamings Dividends 105,000.00 Bakery Sales Merchandise Sales Cost of Goods Sold - Baked 105,83429 Cost of Goods Sold - Merchandise 859.77 Rent Expense 24,549.19 Wages Expense 10,670.72 Misc. Supplies Expense 3.000.46 Business License Expense 2,045.77 Misc. Expense 1,363.84 Depreciation Expense 677.86 Insurance Expense 1,091.08 Advertising Expense 1,549.74 Interest Expense 818.31 Telephone Expense 490.98 Gain Loss on disposal of equipment 429,136.32 33 34 105,834.29 859.77 24,549.19 10,670.72 3,000.46 2,045.77 1,363.84 677.86 1,091.08 1,549.74 818 31 490.98 100.00 432 111.32 35 36 37 38 39 40 100.00 6,375.00 429,136.32 6,375.00 432,11132